Cramer: Happy Halloween—Fed fears unmasked

The Federal Reserve finally pulled the plug on its bond buying program. And guess what? We are still standing. The market didn't crumble and we didn't fall down a black hole of poverty in the process.

What gives?

Jim Cramer knew that the market didn't rely on the bond buying program; the good earnings that are released from last quarter are really just good, old fashioned hard work paying off. Not reliance on the Fed bond buying program.

"Did anyone other than yours truly really believe things would play out this way and tell you repeatedly how unimportant the Fed's bond buying program really was to the greatness of the profits made by terrific companies?"

As with any major change in the economy, Cramer thinks it is a good time to take the pulse of expectations and see where we are. Here are the five horrible scenarios that have been beaten into investors' heads for ages:

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Warning 1: Runaway inflation—The fear that when the Fed stops printing money ceaselessly, it will end badly. Well, on Thursday we found out that gross domestic product grew at 3.5 percent in the third quarter, and inflation was basically nonexistent. Since the nation's economy is strong, the currency is strong. That means retailers can buy goods more cheaply and sell them at better prices. Warning one is out the window now.

Warning 2: Soaring interest ratesInvestors were told that interest rates would skyrocket once the Fed finishes its bond buying program. Meanwhile, the 10-year treasury is at 2.3 percent, and the 30-year is at 3 percent. Doesn't look like they doubled or tripled as people thought.

Warning 3: Bond market destructionPeople thought that the bond market would be destroyed once the Fed finished unloading all of the paper it bought. "All I can say is, please, please, Fed, sell them. There's tremendous demand and maybe the banks would do a little better with higher interest rates." Looks like that fear is crossed off the list.

Warning 4: Illegitimate gainsThis is based in the fear that the Fed would create so much value that stocks wouldn't be able to maintain their value. Well, it turns out that stocks have actually advanced dramatically. Guess it's a good idea to ignore this warning.

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Warning 5: QE easing undertowMany thought that no stocks would be able to overcome the undertow of the end of quantitative easing, and they would be flushed down the toilet. Well, how about a stock like Apple, with a CEO who is not only bold in office but is bold personally. This stock is on fire and has gains that are not hard to overlook. Guess not all stocks have gone downhill. This is just an example—one of many—that keep going up despite the ridiculous warning that it would slip out of the grim reaper's fingers.

So, it turns out the fears screamed from the rooftops were wrong on all five counts. The "Mad Money" host warns that we shouldn't hold our breath for a mea culpa.

"Apologies? Heck, these dopes still think they're right. They always will," said Cramer. For those who were brave enough to think beyond the hysteria mentality, you can laugh yourself all the way to the bank.

Call Cramer: 1-800-743-CNBC

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